Nirmala Sitharaman advises banks to come up with attractive products to boost deposits

Deposits: Finance Minister Nirmala Sitharaman on Saturday directed the country's public and private banks to come up with unique and attractive schemes to increase deposits. Speaking to reporters after the Reserve Bank of India (RBI) central board meeting, he said deposits and credit are the two wheels of the car. Deposits are gradually decreasing. Banks should focus on core business, Nirmala Sitharaman said. This includes raising deposits and providing loans to people in financial need. He asked the banks to come up with unique and attractive schemes to raise money from people to bridge the gap between deposits and loans. Meanwhile, RBI Governor Shaktikanta Das expressed concern over the gap between RBI's deposits and loans, saying interest rates are out of control. Banks often increase deposit rates to attract funds. Banks are free to decide the interest rate, he said. While presenting the bi-monthly monetary policy on August 8, 2024, RBI Governor Shaktikanta Das had expressed concern over the widening gap between deposits and loans in banks. Also Read: How Train Accident Injured Are Treated? RBI Governor Shaktikanta Das on Thursday said shortage of staff in railway hospitals could create cash crunch. Through this, there was talk about increasing the deposit. He had said that banks are increasingly resorting to instruments such as short-term non-retail deposits and liabilities to meet rising credit demand. As I have emphasized, this can lead to structural liquidity problems in the banking system. Also read: Post office's superhit scheme, mother-in-law and mother are all rich, The post Nirmala Sitharaman advises banks, come up with attractive products to boost deposits appeared first on Prabhat Khabar.